On-chain data shows large Dogecoin investors accumulated more than $220 million worth of DOGE last week, the highest since the beginning of this year.
Dogecoin DOGE $0.17 24h volatility: 8.3% Market cap: $25.44 B Vol. 24h: $1.65 B , the oldest and leading meme coin backed by tech billionaire Elon Musk, has signaled a potential parabolic rally in the near term. The large-cap meme coin, secured through the legendary Proof-of-Work (PoW) consensus mechanism, rebounded from a crucial support level in the recent past.
Despite shedding over 7 percent last week, Dogecoin price rebounded from the 50-day Moving Average (MA) in the past three days. Additionally, the meme lord, with a market cap of about $16.2 billion and a daily average traded volume of nearly $800 million, successfully retested the macro bullish breakout from a daily falling logarithmic trend.
According to a popular crypto analyst Ali Martinez, the Dogecoin price is gradually following the fractal pattern established in the previous bull cycles. However, the dog-themed meme coin must consistently close above the 50 and 200 weekly MAs to invalidate a potential retrace in the short term.
Dogecoin Price to Lead in the Upcoming Altseason
From a macro perspective, Bitcoin BTC $84 206 24h volatility: 2.7% Market cap: $1.67 T Vol. 24h: $47.69 B price has largely outpaced the altcoin industry, with the majority of the altcoin pairs still retesting the bear market lows. The DOGE/BTC pair has formed a weekly double bottom, coupled with a bullish divergence on the Relative Strength Index (RSI), an established reversal pattern.
If the DOGE/BTC pair rebounds, ahead of the second Fed interest rate cut and the US general election, the US dollar derivative pair will automatically rebound in the subsequent months.
Notably, Bitcoin dominance has been forming a macro reversal pattern, characterized by a rising wedge coupled with bearish divergence on the weekly RSI.
With the altcoin’s market cap already showing bullish signs in the near term, it is safe to assume the Dogecoin price will surge towards its all-time high soon.
Alts cap is now rebounding after the retest
Expansion is now the next phase. https://t.co/LMc7K12rSY pic.twitter.com/XFq2ZgXb3z
— Mikybull 🐂Crypto (@MikybullCrypto) October 7, 2024
DOGE Whales on the Move
According to on-chain data analysis provided by IntoTheBlock, large holders of Dogecoin purchased around 2.07 billion DOGE units, worth over $220 million, in the past seven days.
Large Dogecoin holders accumulated 2.07 Billion $DOGE last week, the highest since January of this year! pic.twitter.com/AOpdGHzGTe
— IntoTheBlock (@intotheblock) October 7, 2024
The notable spike in Dogecoin whales coincides with the heightened activity of Elon Musk in the political arena. Musk has been attempting to convince the over 50 million registered voters in the United States and invested in the crypto space to vote for Republican presidential candidate Donald Trump.
A win for Trump in the upcoming 2024 general elections could be a major bullish trigger for Doge and the entire crypto space. As a result, the majority of Dogecoin investors in the United States have shown direct support for Musk, who in turn has promised to adopt the meme lord as a form of payment for his unicorns.
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